For many people filing for Chapter 7 bankruptcy is a better option that filing for Chapter 13. There are several good reasons for this, Chapter 7 bankruptcy in Utah is quicker than Chapter 13, in many cases the bankrupt can keep some property and there is no demand for a certain amount of the debt to be repaid such as is the case in Chapter 13.
Advantages of filing for Chapter 7 bankruptcy:
On average, a Chapter 7 bankruptcy case takes between three and six months from the day it is opened to the day it is closed. At the end of the period the individual comes out of it free from all debt other than his or her mortgage if they own a home, car payments and certain debts such as student loans, child support and taxes which are non-dischargeable.
Although it is possible for debtors to lose their property when they file for Chapter 7 bankruptcy in Utah, in truth, most don?t. Bankruptcy court does not want you to become a drain on the state, the court allows you to keep the necessities and as many who file for Chapter 7 have little in the first place there is a very good chance the court will let them have all their property, unless of course, the property in question is being used as collateral for a loan, perhaps a car or home loan.
If your income is high enough that you can present a repayment plan you may not be allowed to file for Chapter 7 bankruptcy, you will have to file for Chapter 13. In Chapter 13 you are allowed to keep all of your assets but you will have to pay all or almost all of your debts.
The drawbacks if filing for Chapter 13 bankruptcy:
The majority of those who are about to declare bankruptcy much prefer to file for Chapter 7 as they are not required to pay portion of their debts, this is not the case with Chapter 13. Those that do file for Chapter 13 are faced with having to complete their payment plan; otherwise they will not have any remaining debt discharged. The greatest majority of those that do file for Chapter 13 find it impossible to complete the plan that has been agreed to with the court which simply means these filers run the risk of not having their debts discharged.
There are reasons why filing Chapter 7 bankruptcy in Utah is the better choice. For a free evaluation of your situation you are invited to contact the Law Office of Andrew B. Clawson, PC. For more information visit The Utah Bankruptcy Lawyer.
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